Though Trump has denied any connection to the Justice Department’s investigation of Powell, he made clear his contempt for the central bank head and his eagerness to be rid of him.
“No matter who’s president, you have a good quarter, and they want to kill it because they’re so petrified of inflation,” Trump said.
“If I had the help of the Fed, it would be easier - but that jerk will be gone soon,” he added.
Trump’s economy is sending mixed signals.
His worldwide tariffs have disrupted global markets but have yet to significantly raise domestic inflation.
Prices in December remained elevated over the same period a year ago but were stable.
One market analyst in a research note today called inflation the “pot [that] won’t boil”.
Still, Powell said in December that the excess inflation in the economy was solely due to Trump’s trade war.
And the President threatened to impose new duties, announcing a 25% import tax on products made by countries doing business with Iran.
Trump, though, may not have the authority to set those tariffs - and his administration has yet to roll out formal guidance implementing them.
The Supreme Court is set to rule as soon as tomorrow on Trump’s ability to leverage emergency economic powers to set and reset tariff rates. The justices appeared sceptical of Trump’s moves during oral arguments last November.
A ruling against Trump’s tariffs could force the Treasury to repay roughly US$140 billion ($245b) plus interest to importers that bore the cost of the taxes.
Trump has based much of his second-term agenda - both on economic and foreign policy - on his absolute ability to set tariff rates.
He has credited trade policy as the lever through which he “solved” multiple armed conflicts.
He convinced hardline GOP lawmakers to consider tariff revenue as an offset for major tax cuts and new spending as part of his new tax and immigration law.
Before his remarks, Trump toured Ford Motor Co.’s historic River Rouge manufacturing facility.
The plant produces F-150s, long the US’ best-selling truck and vehicle overall.
The company, which employs close to 50,000 people in Michigan, attempted to counter the economic effects of the tariffs by launching universal employee pricing in the spring, but in the summer reported it lost money in the quarter and expected to pay US$2b in tariff costs on the year.
Trump carried Michigan, a crucial swing state, in the 2024 election largely by emphasising a populist economic message with a pledge to reduce consumer costs on “Day One”.
Now 51 weeks into his second term, Michiganders have turned on the president’s economic message: 48% of state residents say that Trump’s policies have made the economy “weaker”, according to polling released today by local television station WDIV and the Detroit News.
While 38% of Michiganders say Trump’s agenda have made the economy “stronger”, 64% report paying more for everyday consumer goods.
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